MIDF Research maintains positive on semiconductor sector, Globetronics top pick

by **Cals** Thu 06 Feb 2014, 09:57

Business & Markets 2014

Written by theedgemalaysia.com

Thursday, 06 February 2014 08:59

KUALA LUMPUR (Feb 6): MIDF Research has maintained its positive stance on the semiconductor sector after global semiconductor sales (GSS) reached a new record of US$305.6 billion in 2013.
In a note Thursday, the research house said this was supported by higher sales from across the regions, with the exception of Japan.
It said growth from the Americas region surpassed its peers, which recorded a 13.1% increase in sales.
In comparison, sales from Europe and Asia Pacific grew at a slower pace of 5.2% and 7.0% respectively, said MIDF Research.
“On the contrary, sales from Japan did not outperform due to the weakening of its currency. However, sales has been increasing, albeit at a slow pace, since 2H13.
“Should this be extrapolated into 2014, we could see better sales figure ahead,” it said.
MIDF Research said book-to-bill (BTB) ratio remained above parity (i.e. 1.02x) for the month of December 2013.
The research house said both bookings and billings recorded strong yearly growth of 48.3 and 33.8% respectively.
“We view that this will lead to higher capex spending, moving forward.
“Both GSS and BTB reinforced our positive view on the semiconductor sector.
“We expect this momentum will continue to be seen this year on the back of buoyant demand for smartphone and tablets. This is also matched by new model rolled out by reputable phone manufacturers. Our top pick reside with Globetronics due to its exposure in the right segment,” it said.